Adani Green Exits Controversial Renewable Energy Project in Sri Lanka

14 Feb 2025 CW Team

Adani Green has withdrawn from a renewable energy project in northern Sri Lanka on February 12, 2025, amid on-going concerns from locals and a legal challenge regarding its approval and potential environmental impact. This move represents a significant retreat for the Adani Group from its regional investment plans in the wake of local opposition.

The renewable energy wind farm project, located in the northern towns of Mannar and Pooneryn, was initially approved by the Gotabaya Rajapaksa administration in 2022 without a competitive bidding process. Despite this approval, the project faced significant opposition from local residents, environmental activists, and political groups, who raised concerns about its environmental consequences, particularly the potential threat to a key bird migration corridor. The project had been under legal scrutiny, with the Supreme Court being involved in reviewing the matter.

The Adani Group had been in protracted discussions with the Ceylon Electricity Board for over two years regarding the 484 MW wind farm, which had an expected investment of around $1 billion. However, following the Sri Lankan government's recent decision to appoint a committee to renegotiate the terms of the project, Adani Green chose to withdraw, stating its respect for Sri Lanka’s sovereign rights and decisions.

This withdrawal comes as a victory for Sri Lanka’s President Anura Kumara Dissanayake, who had promised to cancel the project during his election campaign in September 2024, citing corruption concerns. However, his government had later shown willingness to renegotiate the deal.

Despite pulling out of the wind farm project, Adani Group is proceeding with the development of the West Container Terminal at the Colombo port, in partnership with the Sri Lanka Ports Authority and John Keells Holdings.

News source: The Hindu

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